Borouge Announces Merger with Borealis and Acquisition of Nova Chemicals
Abu Dhabi, United Arab Emirates – Borouge PLC, listed on the Abu Dhabi Securities Exchange, has announced significant developments regarding its agreement with the Abu Dhabi National Oil Company (ADNOC) and OMV Aktiengesellschaft (OMV). This agreement involves a proposed merger with Borealis and the acquisition of Nova Chemicals by the newly formed Borouge International Group.
Merger with Borealis and Acquisition of Nova
Under the terms of the agreement, the Borouge International Group will acquire Nova Chemicals for 49.2 billion AED (13.4 billion USD). This acquisition strengthens Borouge’s position in the North American market and significantly boosts its global production capacity. As a result, Borouge will become the fourth-largest global producer of polyolefins.
Financial Details of the Deal
OMV plans to inject 6.1 billion AED (1.6 billion EUR) into Borouge International Group.
The transaction will move forward after receiving necessary regulatory approvals, including from the Securities and Commodities Authority and the Abu Dhabi Securities Exchange.
The deal is expected to close in Q1 2026, pending a review of the financial value of the involved companies.
Increasing Production Capacity and Expanding Global Reach
The agreement includes significant expansion of production capacity. For example, the “Borouge 4” project is set to increase production by 1.4 million tons annually.
This will contribute an estimated annual profit of 3.3 billion AED (900 million USD). Ultimately, the goal is to establish a global polyolefin platform with a production capacity of 13.6 million tons per year.
Dividend Plans and Focus on Sustainability
Borouge International Group plans to adopt an attractive dividend policy.
Specifically, it will distribute 90% of its profits to shareholders.
Moreover, the company is committed to continuing its sustainability efforts by focusing on circular economy solutions and investing in advanced technologies.
Leadership Comments
Hazeem Sultan Al Suwaidi, CEO of Borouge, said: “This merger with Borealis and acquisition of Nova is a crucial step to strengthen our global presence and enhance our ability to offer innovative, sustainable solutions in polyolefins.”
The CEO of OMV also emphasized that the deal will serve as a key growth driver for Borouge International Group, enabling it to meet the rising global demand for advanced polyolefins solutions.
Future Outlook
The headquarters of Borouge International Group will be located in Vienna, with regional offices in Abu Dhabi.
Additionally, there will be centers in Calgary, Pittsburgh, and Singapore.
Once the deal is completed in 2026, the new company will have substantial production capacity, enabling it to compete effectively in global polyolefins markets.
Sources:
- Borouge PLC
- Abu Dhabi Securities Exchange
- Press release from ADNOC and OMV
- WAM (Emirates News Agency)